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2015 (8) TMI 651 - AT - Income TaxUnverifiable purchases - CIT(A) deleted part addition - Held that:- The matter has been set aside by the ITAT twice and the assessee was not able to correlate the purchases made from M/s Anmol Ratan and M/s Shruti Gems to the tune of ₹ 57,50,000/- with export bills. The ld CIT(A) partly accepted the correlation between the purchases made from both the parties and export bills but she confirmed that the purchases made from both the parties are bogus and the assessee might have purchased these items from the grey market but the purchase bills were taken from both these parties. The assessee himself has also accepted that it was not able to correlate the purchases made from these two parties partially. Similar line of cases, this Bench has decided in the case of Shri Anuj Kumar Varshney Vs. I.T.O. and other gems and jewellery cases [2015 (4) TMI 533 - ITAT JAIPUR] where on unverifiable/bogus purchases 15% disallowances has been decided and we have also applied the same percentage as net profit on unverifiable purchases of ₹ 57,50,000/-, which comes to ₹ 8,62,500/-. Thus we confirm addition of ₹ 8,62,500/-. The burden lies on the assessee, which has not been discharged rightly that purchases were made are genuine and same has been exported. - Decided partly in favour of assessee. Disallowance of deduction U/s 80HHC - Held that:- AR has not been able established connection between the purchases made from both the parties and export made by it. When the items purchased and items exported could not be correlated, in absence of correlation no deduction U/s 80HHC can be allowed. Decided against assessee.
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